A company produces refrigerators and knows that the proportion of defective units is 0.05.
The refrigerators are sold in lots of 35 units. A large network of appliance stores accept the lot if it has a maximum of 2 refrigerators with defect in the batch.
Admitting that they've accepted the lot, what is the probability of having observed exactly one faulty refrigerator?
Answer: 0.4102
I've tried to do this using the binomial distribution "formula" using N (trials) as 35 and n (success) as 1, and 2, and probability of success as 0.05 and couldn't resolve this question.
The binomial distribution's pmf is: $p(x)=\binom{35}{x}(0.05)^x(0.95)^{35-x} \quad[0\leq x\leq 35, x\in\Bbb N]$
The conditional probability that there is exactly 1 faulty unit when given that there is a maximum of 2 is $$\dfrac{p(1)}{p(0)+p(1)+p(2)}$$